An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use? a) Revenue growth b) EBITDA margins

An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of
similar firms. Which of the following is not a factor that the analyst should use?
a) Revenue growth
b) EBITDA margins
by

1 Answer

Answer :

d) Debt Equity ratio
by

Related questions

An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use? a) Revenue growth b) EBITDA margins

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Last Answer : d) Debt Equity ratio

A disadvantage of the Enterprise Value method for valuing equity is that it may be difficult to obtain the information about _______. a) operating income b) market value of debt c) market value of equity d) cash and cash equivalent

Description : A disadvantage of the Enterprise Value method for valuing equity is that it may be difficult to obtain the information about _______. a) operating income b) market value of debt c) market value of equity d) cash and cash equivalent

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A disadvantage of the Enterprise Value method for valuing equity is that it may be difficult to obtain the information about _______. a) operating income b) market value of debt c) market value of equity d) cash and cash equivalent

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Last Answer : b) market value of debt

Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of WACC, weight assigned to the preferred stock is based on the coupon rate multiplied by the par value of the stock. c) A firm's WACC will decrease as the corporate tax rate decreases. d) The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.

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Which of the following is a revenue receipt? a) Loan from the International Monetary Fund b) Grant from the World Bank c) Borrowing from the Public d) Public Issue of shares

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The decline in the combined ratio is most likely to indicate that the insurer has ___________. a) increased its administration expenses b) increased its long term borrowing c) improved its investment returns d) improved its underwriting results

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Last Answer : to the extent of capital gain invested in the house property

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